Dubuque Could Pay $283K Settlement To Manufacturers


Dubuque city leaders may end up paying more than $283,000 to 16 manufacturers that are seeking rebates on natural gas franchise fees.

The city council will review the proposed legal settlement on Wednesday.

Council members passed a 2 percent natural gas franchise fee in 2003, which provided a rebate for companies exempt from taxes on natural gas used in manufacturing. The 16 companies argued they were unaware of the exemption until 2013, and filed a 2014 lawsuit claiming the city wrongfully withheld reimbursement on their utility bills dating back to 2009.

City officials recommended that council members approve the settlement to end an ongoing lawsuit, more than three months after the Iowa Supreme Court declined to hear the city’s appeal.

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